BLUE DOLPHIN ENERGY COMPANY



PRESS RELEASE

FOR IMMEDIATE RELEASE
November 12, 2009

        BLUE DOLPHIN ENERGY COMPANY SUBSIDIARY ENTERS INTO NEW PIPELINE
                            TRANSPORTATION AGREEMENT

Houston,  November 12 /  PRNewswire / -- Blue Dolphin  Energy  Company  (NASDAQ:
BDCO) ("Blue  Dolphin"),  an independent  oil and gas company with operations in
the Gulf of Mexico,  announced  today  that its  wholly-owned  subsidiary,  Blue
Dolphin Pipe Line Company,  has contracted with a new shipper to provide gas and
condensate  transportation services for the shipper's production to be delivered
into the Galveston  Area Block 350 Pipeline.  The  production  will be delivered
into  the   pipeline  in  Galveston   Area  Block  385.   The  Company   expects
transportation  services  for this shipper to commence in early  December  2009.
Throughput volumes are not yet known. Blue Dolphin Pipe Line Company owns an 83%
undivided interest in the Galveston Area Block 350 Pipeline.

Blue Dolphin  Energy Company is engaged in the gathering and  transportation  of
natural gas and  condensate and production of oil and gas in the Gulf of Mexico.
For     further     information     visit    the     Company's     website    at
http://www.blue-dolphin.com.
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Contact:
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Thomas W. Heath
President
713-568-4725

Certain of the  statements  included  in this  press  release,  which  express a
belief,  expectation or intention,  as well as those regarding  future financial
performance or results, or which are not historical facts, are "forward-looking"
statements  as that term is defined in the  Securities  Act of 1933, as amended,
and the Securities Exchange Act of 1934, as amended. The words "expect", "plan",
"believe",  "anticipate",  "project",  "estimate",  and similar  expressions are
intended  to  identify   forward-looking   statements.   These   forward-looking
statements  are  not  guarantees  of  future  performance  or  events  and  such
statements involve a number of risks,  uncertainties and assumptions,  including
but not limited to  industry  conditions,  prices of crude oil and natural  gas,
regulatory changes,  general economic conditions,  interest rates,  competition,
and  other  factors.  Should  one  or  more  of  these  risks  or  uncertainties
materialize or should the underlying assumptions prove incorrect, actual results
and outcomes may differ  materially from those indicated in the  forward-looking
statements.  Readers  are  cautioned  not  to  place  undue  reliance  on  these
forward-looking statements,  which speak only as of the date hereof. The Company
undertakes  no  obligation to republish  revised  forward-looking  statements to
reflect  events  or  circumstances  after  the date  hereof  or to  reflect  the
occurrence of unanticipated events.

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